OFFICE OF LOGISTICS STRATEGIC PLAN - 1981-1986

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-01146R000300070006-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 84
• Document Creation Date: December 14, 2016
• Document Release Date: April 9, 2003
• Sequence Number: 6
• Publication Date: January 1, 1981
• Content Type: MEMO

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NOTE FOR: Chief, Plans and Programs Staff, OL
FROM: James H. McDonald
Director of Logistics
SUBJECT: Office of Logistics Strategic Plan -
1981-1986
1. I have had an opportunity to review the subject
plan and find it more than adequate as a point of beginning
for our Division Chiefs at the forthcoming conference. I
would expect that they would concentrate their efforts on
the Goals and Plans sections which are the most difficult
and yet most useful portions of the manual.
2. There were three areas that struck me as being lacking
in reading through this first effort:
a. The need for innovation and a willingness to
try new approaches and new methods is of utmost impor-
tance to all Divisions and Staffs but is only rarely
mentioned in the plan.
b. The Division Chiefs have clearly prepared
their inputs from their own parochial points of view
rather than looking on OL as a total system. This
is to be expected, but, hopefully, we can change that
outlook during the forthcoming conference.
c. More and more, DoD and other Government agencies
heavily involved in logistics are requiring that ILS
planning be included in the earliest stages of major
technical projects. Such projects do exist within the
Agency in S&T and in OC. Somehow, we must ensure that
at least a few logisticians are trained in these tech-
niques and actively included on project teams at their
inception.
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SUBJECT: Office of Logistics Strategic Plan -
1981 - 1986
3. Again, I am very impressed with the preliminary work
that Pete did on this document even though I am sure a number
of changes will be made following our conference. I am send-
ing Pete a separate note to thank him for his efforts to date.
m s cDonald
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 _
_
j
p
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Office of Logistics Strategic Plan - 1981-1986
FROM: James H. McDonald EXTENSION
Director of Logistics
I I
NO.
--- ------
DATE
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
to whom. Draw a IFie across column after each comment.)
C/PIPS, OL
3.
4.
5.
7.
10.
11.
12.
13.
14.
---
15.
FORM 610 USE PREVI
1-79 EDITIONS
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NOTE FOR: Chief, Plans and Programs Staff, OL
FROM: James Ii. McDonald
Director of Logistics
SUBJECT: Office of Logistics Strategic Plan -
1981-1986
1. I have had an opportunity to review the subject
plan and find it more than adequate as a point of beginning
for our Division Chiefs at the forthcoming conference. I
would expect that they would concentrate their efforts on
the Goals and Plans sections which are the most difficult
and yet most useful portions of the manual.
2. There were three areas that struck me as being lacking
in reading through this first effort:
a. The need for innovation and a willingness to
try new approaches and new methods is of utmost impor-
tance to all Divisions and Staffs but is only rarely
mentioned in the plan.
b. The Division Chiefs have clearly prepared
their inputs from their own parochial points of view
rather than looking on OL as a total system. This
is to be expected, but, hopefully, we can change that
outlook during the forthcoming conference.
c. More and more, DoD and other Government agencies
heavily involved in logistics are requiring that ILS
planning be included in the earliest stages of major
technical projects. Such projects do exist within the
Agency in S&T and in OC. Somehow, we must ensure that
at least a few logisticians are trained in these tech-
niques and actively included on project teams at their
inception.
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 Approved For Release 2003/05/28 : CIA-RDP87-01146R000300070006-8
SUBJECT: Office of Logistics Strategic Plan -
1981 - 1986
3. Again, I am very impressed with the preliminary work
that Pete did on this document even though I am sure a number
of changes will be made following our conference. I am send-
ing Pete a separate note to thank him for his efforts to date.
Distribution:
Orig - Addressee
1 - bD/L
1 - D/L Chrono
-1 - OL Official
DD/ L:
(16 Jun 80)
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Draft Three
June 17, 1980
OFFICE OF LOGISTICS
STRATEGIC PLAN
1981 - 1986
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S E C R E T
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SECTION 1 - INTRODUCTION
Page
1.1
Purpose
1
1.2
Planning Process
2
1.3
Goals and Objectives
4
1.4
Policy and Guidelines
11
1.5
Assumptions
12
1.6
Issues
SECTION 2 - ENVIRONMENT
15
2.1
Public Environment
18
2.2
Intelligence Community Environment
19
2.3
Management Environment
19
2.4
Logistics Goods and Services Environment
21
2.5
Office of Logistics Environment
22
2.6
Logistics Automated Systems
27
2.7
Paperless Society
SECTION 3 - RESOURCES
29
3.1
Personnel
30
3.2
Logistics Management
32
3.3
Facilities
34
3.4
Financial Resources
SECTION 4 - REQUIREMENTS
39
4.1
Introduction
41
4.2
Scope
41
4.3
Space Requirements
42
4.4
Standard Level User Charges (SLUC)
44
4.5
Building Maintenance
44
4.6
Printing and Photography Support
44
4.7
Energy Conservation
45
4.8
Supply Operations
45
4.9
Procurement
46
4.10
Printing and Photography
50
4.11
Other Logistics Requirements
53
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TABLE OF CONTENTS (continued)
Page
5.1
General
56
5.2
New Initiatives
57
5.3
Initiatives in the OL Functional Areas
60
5.4
Energy
Conservation
73
5.5
Other
Management Initiatives
74
5.6
Beyond
the Plan
75
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Executive Summary
This plan is to formally document the OL's long-range
goals over the next five years. These goals are predicated on
what Logistics managers predict must be done to responsively
meet requirements.
The underlying thread throughout this plan is one of diminishing
resources pitted against increasing demands. OL must develop a
course of action which deals with the dichotomy and arrive at
J1 Y
a position of accomodation. The plan takes full recognition of
the difficulties and uncertainties of predicting the future; yet,
good management practices require that the organization look
ahead if it is to maximize its utility to the Agency.
The introduction sets the tone of the plan, and provides
a format for developing, executing, and tracking the plans progress.
Broad goals are identified with specific objective$--------- for
accomplishing the goals. This section addresses some of the
office policies and guidelines and makes some assumptions to
be considered in the planning process. The challenge throughout,
is that Logistics will be faced with the problems of fewer
resources, higher costs, increasing demands, and the need to
compensate for these constraints through increased productivity.
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Section 2 addresses the environmental consideration. Because
we are planning a strategy to move ahead, it is important to
know what is going on outside the organization that may effect what
we are attempting to do. The section also provides an insight
of the major historical events in the evolution of Logistics
from the early years of the organization to the present time.
The benefit of this information is that it may be useful to
managers to look at events in the historical context in which
they occurred and assess their applicability to current and
future events.
The third section looks at Logistics resources - human,
financial, material, and organizational - currently avail-
able to the office. We know at the beginning what we can
count on to work with. The likelihood that the resources pic-
ture will improve much is remote. Therefore, managers may need
to alter or reallocate available resources for the office to
best meet Agency objectives.
Section 4 deals with Logistics requirements from two
positions. First identified are the requirements to
satisfy customer's needs, along with a brief mission description
of each of the operating Divisions. Secondly, the section
identifies those requirements which Logistics must levy upon
itself if it is to create and maintain a viable logistics
support structure. Specific issues in areas of supply, procurement,
space, printing, and others are touched upon.
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The Plans, Section 5, discusses in greater detail programs
which meet the goals and objectives discussed in Section 1. It
is at this point in the planning process that the Management by
Objectives program, the Personnel Development Plan, and the
Program Call must begin to be melded together into an office
strategy. Objectives must be assigned, action plans developed
with a greater degree of specificity, and financial and human
resources identified and committed to the programs. Managers
can then begin to execute their portions of the Plan and be
evaluated according to their contributions and successes.
Section 5 is of prime importance as it forms the foundation
for the integration of the planning, budgeting, and evaluation
(MBO and AWP) aspects of office management. Section 5 will be
the functionally operative part of the plan, while Section 1
through 4 serve to provide information, philosophy, guidelines,
and continuity. Section 5 is action, the remaining section $
provide/ support to clarify Section S. The integrated thrust
of the plan is to focus the application of creativity and
innovation to improve our support capability. Requirements
must be identified and our existing policies and procedures
analyzed, and understood. Then the leadership and communications
must exist to recognize all the alternatives to meet known and
anticipated requirements and to implement the organization and
systems that best meet the known and aniticipated requirements.
It is important that strategic planning remain a dynamic
process. The plan will require regular evaluation and adjust-
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ments according to circumstances. Once the plan is adopted,
it provides the baseline for decision-making in the organization.
Deviation from the baseline may not only be desireable, but
sometime necessary if the organization if to succeed. The
plan exists to assist managers in doing their jobs, and exists
to promote the general well being of the office and the Agency.
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During the years covered by this plan, 1981 and 1986,
Logistics managers will have the responsibility for maintaining
a viable logistics system responsive to the needs of the Agency.
The process of maintaining a strategic plan will ensure that
an information flow exists to anticipate Agency future goals
and once the goals are recognized and approved to ensure that
management and control exist such that the path to the goals is
unambiguous, flexible, and efficient.
As in most support organizations, demands for logistics
goods and services are time-critical; that is, the organization
must be able to respond within defined timelines. The services
which Logistics provides are perishable, and all too often these
requirements are influenced by environment consideration over
which Logistics has little or no control.
While it is clear that strategic planning requires
long-term forecasts, it is also clear that predictions into
the future may not be accurate. Operating managers should
view the plan as flexible, work to track changing Agency
requirements, and adjust their strategies accordingly.
It is a certainty that the management of scarce resources--
financial, material, and human--become increasingly important
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to the Office of Logistics (OL). In absolute terms, the value of
the dollar and what it will provide will continue to diminish.
On the other hand, demands placed on the logistics system and
the level of services which will continue to be required will
grow. The only way Logistics can respond to this dilemma is
by increasing productivity.
Strategic planning is to remain a dynamic process with the
Plan itself subject to periodic review and adjustment. Once
the strategy is formulated and approved, it becomes the baseline
for OL decisionmaking. The Management By Objectives (MBO) pro-
gram, the Personnel Development Plan (PDP), and the Program
Call (PC) are all an integral part of the process and must be
well coordinated and jointed together into a unified strategy
for action.
The following processes are required in the development,
execution, tracking, and review of the Plan.
A. Development
(1) Develop a clear statement of the organization's
mission and responsibilities for the five-year
period.
2
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(2) Identify goals and objectives which will
get the organization to where it perceives
it needs to be.
(3)
B. Execution
Incorporate these goals and objectives into
the MBO, PDP and PC, and/or other managerial
tools used by the Agency.
(1) Assign specific tasks to meet the objectives of
each component.
(2) Identify milestones and prepare action plans
for accomplishing the tasks and objectives.
C. Tracking and Evaluation
(1) Once each quarter action components are to
review with senior management progress towards
accomplishing objectives.
(2) Senior managers should continually review the
Strategic Plan for completeness and accuracy.
This should include the goals and objectives,
the PDP, the budget, and the evaluation of the
action officers' performance.
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(1) Once each year, the senior Logistics managers
should come together for a comprehensive review
and update of all phases of the Plan. The
Plan and Programs Staff will participate with
the Divisions and Staffs in coordinating and
monitoring the Plan.
The following goals and objectives have been identified
by OL management for Plan execution:
Logistics will increase its productivity in order to
compensate for diminishing resources and to cope with
increasing demands.
Objectives:
1. Develop an improved automated logistics materiel
management system which will transfer labor-
intensive operations to computers and will more
closely integrate logistics processes in areas of
materiel acquisition, distribution, and property
management. This system will involve the link-up
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interaction of requisitioning, procurement, receiving,
inventory and accounting/budget/payment aspects of this process.
Such a system employing information handling technologies,
woule eliminate data input duplication, paper-flow blockage,
data integrity issues and would provide accurate production
capabilities.
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2. Enhance logistics ability to provide perishable
intelligence in printing and photography to all
Agency components on a time-critical basis through
the use of advanced technology.
3. Perform a comprehensive personnel functional analysis
of the Logistics work force for the purpose of identi-
fying job requirements, qualifications, and assign-
ments, training, and rotational guidelines, as well
as an overall rounding considered essential for
individuals who demonstrate a high potential for
development to managerial positions.
To establish a coordinated planning and forecasting
mechanism that will permit early identification of
procurement requirements and enable procurement and
requirement officers to develop more coherent program-
matic acquisition strategies.
Objectives:
1. Establish a relationship with the Comptroller and
major requirements officers so that budgetary
estimates of procurements may be acquired prior to
the start of a fiscal year.
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2. Develop acquisition strategies with requirements
officers based on a total program vice individual
aspects of a program.
To establish effective acquisition procedures that
permit a consistent and coherent treatment of each
procurement while conforming with regulations published
by the Office of Management and Budget (OMB) and other
Federal policy agencies.
Objective:
1. Develop detailed procedures manuals covering the
acquisition process thereby ensuring that management
policy is translated into actual practice.
To rationalize the procurement organization within this
Agency to accord with the recommendations of the Commission
on Government Procurement.
Objectives:
Reassess the present procurement organization's
position in the Agency's hierarchical structure.
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2. Develop strategy to measure the use of scarce
To plan for, obtain funds, and begin construction of
a new building on the headquarters compound in order
to consolidate all Agency employees scattered throughout
the Washington metropolitan area.
1. Organize a Building Planning Staff to conduct a
feasibility study on the nature and type of building
required.
2. Prepare for submission to Congress in the FY 84
Program Call a request for approval and funds for
the new facility.
3. Begin architecture, engineering, and negotiations
for the facility commensurate with appropriate
approvals and availability of funds.
Goal 6:
To become more efficient in the operations and main-
tenance of Agency facilities.
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Objectives:
1. Conduct a feasibility study to determine alter-
natives to utilizing the General Services Adminis-
tration for facilities maintenance.
2. Initiate a program from the selected alternatives
for a more efficient and effective building main-
tenance program.
To improve the Agency Industrial Facility Inspection
Program.
Objectives:
1. Consolidate the Agency industrial facility reinspection
function within the Security Staff, OL.
2. Automate the industrial security data base.
3. Microfiche Industrial Contractor Facility data
files.
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Improve the present capability of supporting Agency
programs on a worldwide basis.
Objectives:
1. Conduct operational readiness exercises at the
on an annual basis and search for
methods to improve upon the present quick-reaction
capability.
2. Initiate a career development and personnel plan
for the which would include an
apprentice program for the young and the hiring of
young journeymen capable of assuming specialized
positions.
To become autonomous of GSA in the leasing, acquisition,
and construction of real property.
Objective:
1. Through existing statutes, exceptions, or new
legislation, prompt independent authority for the
Agency to lease, acquire, or construct real property.
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Goal 10:
To enhance the OL managerial decisionmaking processes.
Objectives:
1. Incorporate into the automated systems productivity
standards and measurements, and other management
data which can be easily retrieved and assimilated.
2. Develop efficient, automated systems for information
handling, and document control.
3. Re-examine the OL management structure and ensure
that levels of authority and responsibility are
appropriately defined and communicated.
Become more efficient in the management and conservation
of energy resources.
Objectives:
1. Work with GSA to study and enhance energy efficiencies
in Agency buildings.
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2. Study the feasibility of converting classified and
other paper trash into energy.
3. Replace the less efficient Agency vehicles with
vehicles that are more fuel efficient.
4. Promote the use of gasohol for Agency-owned vehicles.
1.4 POLICIES AND GUIDELINES
a. Policies
Policies of the Director of Logistics relevant to this
plan include:
(1) Management efficiency
The logistics system remain responsive to the
Agency mission, and that it be managed efficiently
and effectively regardless of assumptions of the
original plan that have become outdated.
(2) Any actions issuing from the Plan must be in
compliance with applicable Agency regulations
and statutory requirements.
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b. Guidelines
(1) Dynamics
Planning should be a dynamic process which will
permit managers to adapt to changes in the
environment while retaining a realistic balance
between expectations and results.
(2) Innovation and Motivation
The organizational environment should be such that
creativity is encouraged. Efforts must be directed
towards finding new methods to improve productivity.
New and better ways must be found to streamline our
system through working smarter and sharing resources
of information.
1.5 ASSUMPTIONS
a. Financial Resources
The Logistics budget will continue to be austere; the
dollars available will decrease in absolute terms while
demands for goods and services will continue to grow.
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b. Personnel Resources
(1) Attrition will continue at a nominal rate, but it
will be challenging to retain professional personnel.
(2) The personnel ceiling will remain relatively
stable. The types of OL positions, distribution
of skills, and training criteria may need to be
realigned.
(3) Support personnel in the field will be reduced by
at least 5 percent over the next five years. Log-
istics personnel will be reduced considerably less.
A hostile overseas environment will make the assign-
ment of personnel overseas more difficult.
c. Facilities Management
(1) As the Headquarters and other Agency buildings get
older, costs of operating and maintaining these
facilities will increase. The cost of maintaining
utility system reliability will be particularly
high.
(2) Office space will be further exacerbated as computers
and other technical systems displace personnel.
This condition will become particularly acute over
the next five to ten years.
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d. Energy
Energy resources will become more scarce and costly,
requiring greater efforts in the management and conservation
of these resources. There will be a dramatic increase
in the cost of services such as transportation and
utilities, which are energy-intensive.
e. Political Environment
Attitudes of Congress, the press, and the general
public will become more favorable towards the Agency,
but Agency activities will continue to be closely
observed.
f. Paramilitary Activities
As the turbulence and turmoil in the unsettled world
continue, the Agency may be tasked to increase covert
action abroad.
Technical Collection
The continued advances in technical collection system
will require commensurate highly responsive logistics
support systems.
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h. Information Handling
Pressures will continue to reduce the voluminous amounts
of paperwork and files and to develop efficient information-
handling alternatives. The quality, storage, and retrieval
of information will have to be improved. Effective
information handling will form the basis of a management
information system, which in turn will be the basis of
the effective administration and real time management
of the OL.
Issues must be addressed as the Strategic Plan develops.
Among these key issues are:
a. Capital Investment - In absolute terms the value
of the dollar has diminished while the support
budget continues to be austere. Investment priorities
must be established in areas concerned with plant
and equipment, energy conservation, advanced
technical system (ADP, Printing and Photography)
and transportation.
b. Energy (and material) Conservation - Failure to
conserve sufficient energy and material resources
to offset escalating prices has already led to a
fiscal shortfall approaching $lM in FY 1980.
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Catastrophic shortfalls are predicted for FY 1981
if additional funds are not made available or
drastic steps towards conservation take place.
Transportation and printing and photography are
particularly affected.
c. Informati.on:H:andling There is a proliferation of
paperwork and information handling systems throughout
the Agency. The systems are somewhat decentralized and
uncoordinated. Information is voluminous, but
selective data is difficult to retrieve on a
timely basis.
d. Personnel Utilization - Personnel must be better
trained and equipped to deal with advanced technology
and new managerial challenges. The number of
support personnel in the field are being reduced.
e. Need to Change Technological advances, particularly
in areas of communications and automated data pro-
cessing may begin to be amalgamated. The support
structure will have to adjust to these changes in
such a way that OL can become more productive with
fewer resources.
f. Paramilitary Capability - OL's ability to mount
successful paramilitary support operations is
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now questionable. The skilled personnel are no
longer available, and the
serves 25X1
primarily as a storage facility of greatly reduced
ordnance assets. Given the deteriorating inter-
national situation, additional resources may have
to be expended in this area.
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SECTION 2 - ENVIRONMENT
2.1 PUBLIC ENVIRONMENT
Congressional, press and general public sentiments seem
to be more favorably disposed towards the Agency. While
this is the case, Agency activities will still be closely
observed. The Freedom of Information Act, unless changed to
provide more protection to the Agency, will continue to make
Agency procurement policies and practices, such as competition,
sole source, and contractor relationships more vulnerable to
seekers of information under the act. Covert logistics
activities will. continue to require judicious management to
ensure protection of sources and methods.
The Federal Government procurement process has grown
progressively more complex over the years. This complexity
is particularly evident in such concepts as life cycle costing,
cost of capital investment, various lease-purchase alternatives,
and complex incentive formulas. Also adding to the confusion is
the fact that some 40 different socioeconomic programs are
implemented through the procurement process. These factors and
others which contributed to making the Federal procurement
process complex and sometimes confusing, plus a competitive
marketplace where contractors more and more are willing to
protest Agency procurement decisions, have made career develop-
ment and professionalism of the contracting officer one of the
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top priorities for the Office of Federal Procurement Policy
through its Federal Acquisition Institution. These problems
may be even more complex in CIA where we are also faced with
the complexities of security.
2.2 INTELLIGENCE COMMUNITY ENVIRONMENT
The movement towards centralized management of a
national intelligence network continues as the Director of
Central Intelligence exercises more direction and control
over the community. Consolidation of resources at the
community level, and the realignment of collection tasks, as
for example the consolidation of SIGINT in NSA will impact
Agency support systems. While these independent intelligence
agencies have internal support structures, competing systems
can be redundant, inefficient, and difficult to manage.
Further, the security and integrity of Agency operations
bedme more vulnerable to compromise. Particular care must
be exercised to protect the unauthorized disclosure of Agency
sources and methods when participating in joint efforts with
other agencies of the community.
2.3 MANAGEMENT ENVIRONMENT
Senior Agency Management's approach to support in
general has been to hold down the escalating support costs
while insisting on a high level of support services. This
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approach was an adverse impact on OL since the Logistics
budget is redle the costs to provide the same level
The Executive Ady{ ory Group (EAG) is the senior advisory
body to the Director. Composed of the Deputy Director of
Central Intelligence (DDCI) who chairs the group, the
Comptroller, the General Counsel, and the four Deputy Directors,
one of its functions is to identify and advise the Director
on important Agency-wide issues. OI, will present substantive
issues brought before the group through the Deputy Director of
Administration (DDA).
One of the top five priorities for the Office of
Federal Procurement Policy is to clarify the authorities and
responsibilities of contracting officers. This was a concern
of The Commission on Federal Government Procurement and has been
the subject of many studies over the years. It has been a
concern in our Agency as evidenced by various Inspector General
findings over the years and most recently by a January 1980
memorandum from DCI Turner to DDCI Carlucci in which the
Director stated "...I wonder if we shouldn't strengthen the
perception of the contracting officers' authority versus the
Contracting Officer Technical Representative (COTR)." Notwith-
standing concern inside and outside of CIA at the highest
levels, our policy and coordination responsibility is
placed at a relatively low level as a staff within Logistics;
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contracting personnel report to requirements personnel and have
their performance appraisals written by requirements officials,
and decisions on bonuses for procurement officials in the Senior
Intelligence Service who are decentralized will be made by
the host officials. All of these conditions tend to reduce
the authority of the contracting officer or give the appearance
of some degree of conflict of interest. As a result of a
recommendation by the Task Force on Industrial Contracting
and Security, while contracting officers' reporting to line
requirements officials is less than desirable, none the less a
procurement officer is involved in the evaluation process
either as primary rater or as reviewing authority.
The annual Program Call provides for an exchange of
information between Logistics and senior Agency management
so that management is aware of OL's broad objectives and
resource needs. The Management by Objectives program is
another vehicle used to identify key issues and develop
courses of action. This process provides for the periodic
review of objectives by the D/L and the DDA. Not all MBO's
are included in the Program Call, however, the vehicles,
the Program Call, and the MBO's do not now move simultaneously
through the decision points and are not used as an integrated
managerial tool.
2.4 LOGISTICS GOODS & SERVICES ENVIRONMENT
Customer demands for goods and services have not subsided,
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system continues to react to emergency requirements, to lack
of planning, and to year-end spending. This operating mode, which
is typically characteristic of the OL system, is inefficient and
costly. As an example, Space is at a premium, particularly at
the Headquarters building. The
building, to be constructed
and available for occupancy in mid 1981, will provide approximately
85,000 square feet in
This space will offer
some relief from the overly congested areas in Headquarters.
However, the continuing dispersal of Agency buildings will
drive up the use and cost of energy, an interesting dichotomy
at a time when a major national priority is energy conservation.
Long range integrated agency planning will level to efforts
to consolidate spa)e Headqua ters compound via new
construction/.
2.5 OFFICE OF LOGISTICS ENVIRONMENT
The Director of Logistics is responsible for developing
logistics policy and implementing logistics support to all
Agency activities, the position has the responsibility for
establishing and maintaining procurement and supply systems,
administering the real estate and construction programs, and
providing printing, photography, mail, courier, transportation,
and other appropriate logistical services.
Logistics management philosophy has been one of providing
logistical support responsive to tasking requirements. This
attitude pervades throughout the logistics organizations despite
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the)often-mandated reductions in budget and personnel. Logistics,
therefore, operates in an environment where it is constantly called
upon to extend itself, often under stressful conditions.
The general environment causes one to extend themself and
necessarily promotes innovative and reactive management
since managers must somehow compensate for resources that
are becoming in increasingly short supply.
The Office of Logistics, at least in a functional
way, has been around since the inception of the Agency.
Over the past thrty-five years, it has grown from a rather
diffused operation - small support elements, within large
elements, each doing their own thing - to a centralized,
highly-skilled, and professionally-managed services. It has
demonstrated over the years the capacity to rsond quickly
to support requirements for clandestine paramilitary operations
through supporting the needs of the highly technical collection
systems. It has advanced from a predominately labor-intensive
manual and mechanically orientated organization to the more
suphisticated organization employing automated systems.
This is particularly the case in areas of inventory management
and printing and photography.
The major milestones in the history and growth of the
Office are presented below so that planners may place the Office
and its evolution over the years in the proper context in terms
of its Agency support role:
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o October 1945, the Procurement and Supply Branch
(P&S), with a staff of
people, was the logistics
support arm for the Strategic Services Unit and,
after OSS, the forerunner of CIA.
o Public Law 253, the National Security Act establishing
the CIA, was signed by President Truman on 22 July 1947.
The PFjS Branch became the Services Division,
personnel strength
0
Logistics began to take
on a global role. The CIA began to grow with the
formation of the Office of Policy Coordination
which was the impetus to Agency paramilitary
operations. Logistics functions were diffused
during this time.
o The Deputy Director for Administration was formed
in December 1950. Logistics functions - Procurement
and Supply and Administrative Services - remained
separated organizationally. OPC and OSO were
merged in 1952. The clandestine services resisted
consolidation of a unified support structure until
well into 1960's.
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o The Logistics Office was renamed Office of Logistics
under the DDA. There was a rapid growth in personnel.
By 1960 there were over
property procurement account was
employees, and the
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o 1955, Congress authorized funds for construction
of CIA Headquarters. Building Planning Staff
formed to coordinate planning and construction of
new CIA building.
0 1959,
office established.
Eisenhower lays cornerstone for Langley Headquarters.
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0 1967, new printing plant completed on the Head-
quarters compound.
0 1967 - 1968, in response to needed support to
technical programs, procurement contractor teams
assigned to technical components of the Agency,
with delegations of authority by contract. Property
procurement
0 1970's, U.S. withdrawals from Vietnam and Laos;
closed. On-board personnel strength dropped
25X1 to I I while personnel ceiling dropped to
25X1 0
1979,
and closing of major
0 1980, Career service positions expected to bell,
on-board strength will be approximately
0
The Office has gone through some rather turbulent years.
Its rapid growth was in response to a global intelligence
support role, particularly in the areas of paramilitary
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operations and large technical collection systems. The
1980's will equally challenge managers to meld a logistics
system which is appropriate to today's environment, diminishing
resources of all kinds, increasing requirements and a higher
level of public visibility. This transaction will require
creativity and innovation to insure Logistics capabilities
teach Agency support requirements.
2.6 LOGISTICS AUTOMATED SYSTEMS
Logistics began using automated systems in the early
1950's. However, the major thrust towards ADP applications
did not begin until the mid-1960's with the formation of the
Support Information Processing System (SIPS) study group.
SIPS did not materialize and there were many years of groping
before Logistics got its first truly on-line Inventory
Control System (ICS) in 1974. The system is now six years
old, and has had no major enhancements since that time. While
the dynamics of the Office have changed considerably, the
system has remained basically unchanged, has become obsolete
and is now the subject of a study to determine the requirements
of a replacement system.
The Contractor Information System (CONIF) with several enhance-
ments is used to record and track contracts information.
It also provides some relevant data to the Office of Finance.
Another major logistics automated system is the Federal
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Automated Requisitioning System (FARS) which will soon be
operational. This system will enable the Supply Division to
interdict the Federal Supply System via computer; heretofore,
this has not been the case.
There are other OL systems which are useful, such as
the Preventive Maintenance System, the ,RAMS report (office
space), the weapons tracking system, and others. While
these systems are all highly useful, they operate independently
of each other and rarely, if ever, is data shared or exchanged.
The Printing and Photography Division has been one of
the front runners in pushing the state-of-the-art in automation.
The Division's productivity is high and the quality of its
product is first-class. The Electronic Text Editing System,
and the Management Information System are several examples
of computer applications employed in P&PD.
Since the demise of SIPS, the Office of Logistics has
never really focused on a broad conceptual model of total
logistics materiel management and information handling
system. Therefore, except for the PFPD effort, what logistics
systems there are are diffused and unrelated to each other. Further,
there is little or no compatability between OL systems and
other systems within the DDA.
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2.7 PAPERLESS SOCIETY
Within the Agency more emphasis is being placed on
alternatives to paper and information handling. The emphasis
on "electronic mail," the development of the Support Analysis
File Environment (SAFE), and the Clandestine Records Application
Field Terminal (CRAFT) along with an Agency consciousness to
reduce the voluminous amounts of paperwork and hardcopy files,
will have a positive effect on these Agency efforts. OL must
become a full participant in programs to reduce paperwork, and
improve the flow of information.
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SECTION 3 - OFFICE OF LOGISTICS RESOURCES
In the latter part of the 1970's, the OL personnel ceiling
25X1 hovered at approximately
25X1 there were
positions. As of 31 December 79
OL career service positions. The personnel posture
will remain relatively stable in the next five years, with perhaps
the mix and nature of jobs changing because of anticipated advances
in ADP application, and job restructuring.
Approximately two-thirds of the personnel are professional
officers and clericals while the remainder are wage board employees.
25X1
positions are within the office and
are assigned to other components and at domestic field and
overseas installations. Forty personnel from other career services
are assigned to OL to support Logistics in areas of industrial
security, personnel and training, budget and finance, and auto-
mated data processing.
While it is expected that the OL population will remain
relatively stable over the next five years, events occurring from
outside the office could ultimately cause this to change.
Knowing that the normal bureaucratic processes associated with
personnel policies are slow to react to change, OL will be left
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in a position of having to make do with the personnel it has if
manpower requirements need to be increased. Logistics response
to innovations brought about by new technology can be expected
to be more immediate as long as additional manpower is not
required.
From FY 80 through FY 86, Logistics careerists, 0
percent, will be eligible for retirement, and while the total
population will remain stable, the internal disruption will
continue to be great, as OL managers attempt to juggle personnel
to fill needed jobs and skills. Distribution by grade and
condition of retirement is as follows:
Civil
Service
(Optional)
GS-04 thru GS-10
GS-11 thru GS-15
Wage Grade
CIARDS
(Voluntary/
Mandatory)
Employees who become eligible under a special retirement option
(discontinued service/involuntary retirement) could significantly
alter these figures.
3.1.2 Training
Training in Logistics has a twofold purpose. First, it
provides for training which will enhance on-the-job skills
directly. Secondly, management encourages and supports the
opportunity for OL careerists to engage in internal and external
training in hopes of improving the employee's career opportunities,
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professional growth, and management skills. OL management is so
mindful of its training responsbiilities that only the Director
may deny an employee's request for training.
The recently initiated Agency Opportunities for Career Develop-
ment program while not a training program does provide career
opportunities for qualified employees, including OL personnel.
3.2 LOGISTICS MANAGEMENT
The Office of the Director directs and supports the personnel
assigned to the Logistics career service and the five operating
divisions of the Office of Logistics. Four staffs and the
executive office provide policy and procedural advice in the areas
of contracting, industrial security, personnel, special programs
evaluation, finance, records and ADP application. It also
operates a contract information system, performs security inspection
of contractor facilities, distributes all correspondence within
OL, monitors and controls the OL budget and procurement allot-
ments, handles all claims by Agency employees, monitors equal
employment opportunity within OL, and directs energy resources
management efforts. The 0-D/L has 0 staff employees, a 25X1
ceiling of ^ positions, and ^ part-time employees.
3.2.1 Logistics Services Division
Provides administrative support to Agency facilities in the
Headquarters area. Functions include courier and mail services,
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motor pool operations, classified waste disposal, distribution of
administrative supplies, management of building space, space
renovations and office moves, furniture maintenance, and parking.
staff personnel assigned; a ceiling of
3.2.2 Printing and Photography Division
positions. 25X1
Agency requirements for intelligence, cartographic, pictorial,
and administrative publications are met through the operation of
a central printing and photographic plant that ensures high
quality, rapid delivery, and rigid security control. P1PD per-
sonnel posture is
staff employees on board, a ceiling of
positions, and part-timers.
3.2.3 Procurement Division
Effects the acquisition of all open market purchases of
general supplies and services, major production items and services,
ADP equipment and services, and of covert material. It operates
3.2.4 Real Estate and Construction Division
Acquires, manages, and disperses all official and nonofficial
real property required for Agency operations worldwide. Its two
engineering branches provide technical consultation, project
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management, utilities planning, and contract administration to
support the Headquarters complex and field installations. Its
personnel strength is with a ceiling of ^ positions. RECD
3.2.5 Supply Division
Determines the appropriate source for all Agency require-
ments for supplies and equipment. It administers the Agency
supply system, manages all stock inventories including contingency
reserves, and operates two major supply depots. SD has
personnel on board, a ceiling of
3.3 FACILITIES
0
part-time employees.
25X1
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25X1
Logistics is assigned 444,972 square feet of space in
the Washinton metropolitan area. (Source: CRAMS Report,
January 1980.) The space is allocated as follows: 25X1
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SECTION 4 - REQUIREMENTS
4.1 INTRODUCTION
OL requirements are predicated on customer needs with
the size, complexity, and. magnitude of specific requirements
for goods and services, usually a function of the dynamics of
the operational environment. This fact has traditionally
placed the office in a mode of having to react to unplanned,
unprogrammed, and unfunded requirements. Logistics has generally
remained flexit.ble enough to respond to such requirements-but
at a time of diminishing or fixed resources, more efficient
methods to meet requirements must be found.
OL's objective is to respond efficiently and effectively
to known, as well as unplanned requirements. This plan is to
provide the vehicle for managers to communicate and provide the
creativity and innovations necessary to meet the challenges of
the future.
Logistical support requirements are incorporated into the
program submission. The anticipated future cost increases of
providing the goods and services are factored into the program,
with the exception of the Legislative pay increases. The program
is a reasonably accurate guide for defining resource requirements
provided there are no major disruptions in the Agency mission
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or operating objectives. This is of major concern to Logistics,
since unplanned requirements and end-of-year procurements have
always been a problem for Logistics.
The major resource impact is felt in the area of personnel-
related areas. New and urgent programs, although sometimes
troublesome, may be handled as unfunded requirements or from
other contingency funds outside the purview of OL. Limited
office space and procurement responsiveness have always been
major areas impacted by unexpected requirements.
Efforts to promote, develop, and implement ADP systems
for labor-intensive operations will lag far behind the require-
ments. The pressures will continue to "do more with less"
including doing without timesaving but expensive technology.
The limited availability of funds and the development time
in bringing up new systems will tend to exacerbate the avail-
ibility of already diminishing resources. Therefore the
transition from existing capabilities to more streamlined and
effective methods will be slow.
4.3 SPACE REQUIREMENTS
During this planning cycle, space requirements levied on
Logistics will be extensive. A number of these requirements are
concurrently being acted upon; among these, is the acquisition of
the additional 85,000 square feet of office space.
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4.3.4 Headquarters Building
Design, modification, and construction backfill space require-
ments resulting from the Building occupancy will begin in
December 1980 and should be completed by September 1983. The
moves are if support of DDS&T and Office of Security requirements.
4.4 STANDARD LEVEL USER CHARGES (SLUC)
The annual program submission provides for direct payment to
the General Services Administration for space and services furnished
by GSA. SLUC payments are mandated by statute; and, at the present
time, there is no alternative open to the Agency. SLUC charges
are estimated at
with inflationary costs of approx-
imately 10 percent per year built into the program. Rates are
based on the GSA Fair Annual Rental (FAR) system of appraisal value.
4.5 BUILDING MAINTENANCE
The acquisition of kill place an additiona125X1
workload on the LSD work forces in the areas of building and space
maintenance.
4.6 PRINTING AND PHOTOGRAPHIC SUPPORT
Provide perishable intelligence in printing and photographic
form to all Agency components on a time-critical basis. There is
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a need to improve productivity in order to keep up with rising
demands for services.
4.7 ENERGY CONSERVATION
The Director of Logistics is responsible for energy manage-
ment and conservation within the Agency. Since the scarcity of
energy (fossil fuels) is one of our major national domestic
issues, each Federal agency will need to be responsive to directives
to conserve energy usage. The challenge lies in achieving this
objective with reasonable impact on Agency operations and Agency
employees.
4.8 SUPPLY OPERATIONS
The demand on supply operations is expected to continue at
about the same level as it has been in the past several years.
With an inventory of just under 15,000 line items totaling
25X1
million dollars, stock distribution and levels are not expected
to change significantly. Any major disruption in the relative
status quo concerning paramilitary operations could significantly
change this picture. At the present, time, Logistics has neither
the skilled personnel nor the financial resources to support a
major paramilitary operation.
Supply Division will continue to be responsive to the needs
of the DDO, DDSFTT and Office of Communications for overseas
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support, but recent efforts to reduce the number of Logistics and
Support personnel overseas, as well as in the Divisions, could
cause a realignment of resources within Logistics to fill the
gap. A study is underway to examine communications support bases
overseas with a possible outcome of consolidating and perhaps
retaining some of these facilities overseas.
The greater challenge lies within the Supply Division:
provide the Office of Logistics with a more efficient supply
system that is cognizant of the diminishing resources, while
continuing to meet Agency requirements and adjusting to customer
demands as it moves through the planning cycle. An automated
management system more appropriate to SD needs should lead to
increased efficiencies and responsiveness in supply operations.
4.9 PROCUREMENT
Any forecast of directions for CIA procurement must
consider either what has already occurred or, is predicated for
the rest of Federal Government. In November of 1969, a blue
ribbon Presidential Commission was created by PL 91-129 to
study and recommend to Congress methods "to promote the economy
efficiency, and effectiveness of procurement by the executive
branch of the Federal Government." This group considered some
400 problems and issues, ultimately making 149 separate recom-
mendations. The number one recommendation in terms of priority
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was that, "an Office of Federal Procurement Policy, high in
competence and small in size, established by law and responsive
to Congress, and placed in the executive branch at a level where
it can oversee the development and application of procurement
policy, be established." Under this recommendation, the
contracting agencies were to continue to be charged with clear
responsibility for individual procurement actions.
In 1966,
after an exhaustive study
of procure-
ment in CIA, recommended, among other things, that "a top
level procurement management review and coordination function
function be carried out by the DDS (now the DDA) through a
Special Assistant for Procurement Policy and Control. The
thought behind placement of this responsibility at the DDS level
was that the Special Assistant would be able to "cut across
directorates in procurement matters and, in effect, be the
Agency's overseer of procurement and materiel management."
A Procurement Management Staff was established in response
to this recommendation, but, after various turf battles, was
reduced in status by being assigned as a staff within the
Office of Logistics.
As recently as 1977 a special task force appointed
by the Acting DCI performed an in-depth study on CIA industrial
contracting and security, and recommended that the significance
of procurement be recognized by establishment of a Deputy
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Director for Procurement within Logistics. Also considered by
the task force was the possibility of an Office of Procurement
within the DDA. The recommendation that a Deputy Director for
Procurement be established was not accepted.
The Federal Government processes in supplies 25X1
and services and, in recognition of the importance of the procure-
ment function, has established an Office of Federal Procurement
policy. More than half of CIA's total nonpersonnel budget
(classified) is expended annually for procurement of supplies
and services and yet CIA has continued to maintain its policy
and coordination function at a level that renders it ineffective.
This is inconsistent with other Federal Governmental agencies and
is counter to recommendations by The Commission on Federal Govern-
ment Procurement, or the Task Force on
Industrial Contracting and Security.
Procurement actions are expected to continue at a level of
approximately 40,000 line items per year. This figure does not
include, however, the approximately 2,000 line items that tradition-
ally have been procured for Project I land which are not 25X1
captured in the ICS. That ratio of line items issued from stock
against line items procured will continue at 40 percent to 60
percent.
Procurement Division will be faced with the same kinds of
pressures as Supply Division. As administrative, specifically
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Logistics personnel are withdrawn from overseas and the operating
components, OL will be faced with having to take on the workload
from these reductions. Further, without trained support personnel,
the technical information which is needed to initiate successful
procurement action will be lacking. The contract procurement teams
are expected to remain in a position to support the organizational
components to which they are assigned.
To implement a recommendation of The Commission on
Federal Procurement, the Office of Federal Procurement Policy
(OFPP) has developed a Federal Procurement Data System (FPDS).
This system requires input by all agencies, including DOD,
of data on all contracts. Data includes information such as
contractor name, commodity being procured, competitive versus
sole source, small business versus big business, female-owned,
minority-owned, labor surplus, amount, etc. CIA has advised
OFPP that it cannot input data to the system because of its
requirement to protect sources and methods.
While we have chosen not to input data to the FPDS, we
must be able to capture compatible data from CONIF or other
internal CIA systems to be able to respond to oversight, to our
management, to our committees on the hill, or to others with
proper clearances and need to know.
Security constraints and the complexity of our requirements,
coupled with a shortage of qualified minority contractors,
have contributed to be a serious problem in developing a base of
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minority contractors. This problem is not unique to CIA and is,
in fact, a general problem throughout Federal Government. CIA
management is attempting to improve this situation. The
Procurement Management Staff in Logistics is identifying sources
and disseminating information to all directorates. A memorandum
has gone to each deputy director asking that every attempt be
made to increase the level of contracting activity with minority
contractors.
4.10 PRINTING AND PHOTOGRAPHY
From empirical data, we see a continuing trend toward an
increase in publishing throughout the Agency and the need for
photographic and visual material on an expanded scale, all with
a demand for ever-constricting processing time.
4.10.1 Printing
- Digitized Halftones
In order to print photographs in publications they must
first be prepared through a process called halftone photog-
raphy. Halftone photography converts continuous tone reflective
copy, such as a photograph, into dots of various size by
photographing the original through a fine-line screen. This
process is essential to printing, as it permits the reproduction
of varying tones on a printing press. This process now requires
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skilled technicians, is labor intensive and slow. Automation
will allow fast thruput, consistant quality and greater efficiency.
- Color Scanner
In order to reproduce continuous tone full color pictures
in the printed medium under the existing capability of PPD,
it is necessary to separate the picture into the three basic
colors of red, blue, and yellow, plus black, which adds depth.
These color separations are then broken into minute dots on a
photographic negative through a process called Halftone Screening.
A printing plate is made from the halftone negative and the
color picture is reconstituted on paper by running the process
color plates on a printing press. This traditional technique
of breaking a color picture into the primary colors is both
labor-intensive and time-consuming.
- Laser Platemaker
Press plates are now produced by exposing a light sensitive
printing plate to a light source through a prepared negative.
The negative is produced using conventional photographic processes
and assembly (imposed) into a printing format by offset strippers.
This entire process (photography, imposition, and platemaking),
can be accomplished by a single laser platemaking device. A
laser platemaker scans the prelaid copy with a laser and transfers
the image to a second laser, exposing the image onto a press
plate held in the laser platemaker. The press plate, processed
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directly from the laser platemaker, is then ready for running
on a press, at tremendous savings in labor and material over
the existing method.
- Xerox 9700 Electronic Printing System
P1PD is currently in the process of evaluating the
potential applications of the Xerox 9700. This equipment
merges three technologies: digital computers, with their
capacity for high speed handling of information; the high
resolution imaging capabilities of lasers; and xerography's
ability to produce quality printed output at high speeds.
The 9700 can design and complete forms, change font styles,
provide an abbreviated text composition capability, print on
both sides of paper, and even print publication covers and
place them in the correct collation sequence. The laser-operated
image generator is driven by digital input, therefore, capable
of becoming an output device for P.?PD's ETEC system. The 9700
can be used as a proofing device, a semiautomated forms generator,
or as a rapid response, stand-alone printing system. With the
ever-increasing use of data links, the capabilities of the 9700
become even more interesting (as an interactive information
handling system).
- Bindery Branch Automation
Within the planned modernization of the Press Branch equip-
ment, a new web offset press has become a reality. Its companion
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production piece, a device known as a gatherer-stitcher, automates
the finishing aspect of printed matter generated by the web press.
The gatherer-stitcher is, functionally, an item of binding equipment
which has already produced a favorable impact on Bindery Branch
operations. Its acquisition may represent the first step in
updating the bindery function. Other equipment in this area is
also in need of modernization to prevent the printing sequence
from "bottlenecking" in this Branch.
4.10.2 Photography
- Dicomed COM Recorder
The use of Computer Output Microfilm (COM) has gained wide
acceptance throughout the Agency as an information handling
system. The requirements to place alphanumeric data on this form
of computer output continues to increase, and surveys indicate
that there has developed a demand for graphic illustrations that
will complement the traditional textual data. PtPD's near-term
plans include the acquisition of an advanced generation device,
the Dicomed D148C System, which is capable of producing graphic
illustrations in either color or black and white.
4.11 OTHER LOGISTICS REQUIREMENTS
4.11.1 Industrial Security -
Two-thirds of the resources available to undertake the
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direct control of OL/SS. The maintenance of a fixed schedule
of reinspections by Contracting Team Industrial Security
Offices (ISO) is frequently effected adversely by a variety
of factors over which the Staff has little or no control.
Consolidation of the functions within the Staff is highly
desirable in the interest of better management of the Industrial
Security Program. To effect this, undoubtedly, some additional
resources will be required which go counter to present trends.
Therefore, if accomplishment of the goal flounders due to lack
of resources, two alternatives remain: (a) continue the present
mode of operation, or (b) transfer the reinspection responsibility
to the Industrial Security Branch of OS which is currently con-
ducting periodic comprehensive security audits of contractor
facilities. To reduce the present level of reinspections conducted
would not appear to be a desirable alternative.
Coupled with the inspection program is the requirement to
maintain comprehensive data. The OL Security Staff manages the
SECOND Program which provides an automated record index system
for contractor Industrial Security Approvals. This program also
contains a minimal amount of data that may be transferable to an
automated Industrial Security Data Base program. The format of
an automated Industrial Security Data Base program would be keyed
to the Industrial Facility Inspection Report submitted by ISOs.
Of primary importance is the preservation of the facility
records in the event of fire or other contingency. A reduction
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of hard copy files will also free working space critical for
other needs.
4.11.2 Information Handling
Logistics is a large consumer and generator of information.
Managers are being bombarded with information and inundated with
paperwork. While this is so, the processing, filing and storage,
and retrieval of information is cumbersome and difficult. This
is an area of endeavor which falls heavily on the Logistics
clerical employees. The average annual attrition rate among
these employees within the office is 16.8 percent. Necessarily,
if managers need to become more effective in increasing pro-
ductivity, alternatives to paper and information handling must
be found. Centralized word processing the information handling
centers employeing automation should be considered as a means
to come to grips with this issue.
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SECTION 5 - PLANS
The major premise upon which this plan is based is one of
austere resources, increased demands for logistics services, and
little hope that the situation will improve. This is the under-
lying theme which remains constant throughout the plan. Each OL
component will be affected by the scarcity of resources to a
greater or lesser degree.
The challenge which Logistics will face during the next five
years will be to offset effects of scarce resources through increased
productivity. Therefore, what must occur is for OL to maximize
efficient utilization of existing resources through innovation,
creative management, and the increased utilization of improved
technology. The assignment of organization priorities, the
elimination of marginal systems, and the restructuring of offices
and personnel in a manner which is most responsive to the OL
mission must become part of the scenario in carrying out the plan.
It is in this phase of the strategic planning process that
objectives, the Program Call, the Personal Development Plan and
management direction and philosophy must be melded together.
It is at this point that the planning strategy must become
clearly defined. Past record and historical experiences,
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both successes and failures, are not necessarily "base lines"
for future action. To evaluate current and future objectives
in the context of past events could yield totally inaccurate
results. The environment and circumstances are constantly
changing, therefore strategic planning must be a dynamic pro-
cess. Acceptance of this statement is key to the successful
execution of this plan.
5.2 NEW INITIATIVES
In order to meet the objectives stated in Section 1, OL
will need to take initiatives in the following areas:
Automated Data Processing (APD) Management and Control
Establish centralized management control over ADP
requirements, development, and execution. The Systems
Analysis Branch to become an integral part of the total
OL planning process. All OL ADP systems will be eval-
uated, on the basis of contributions made towards
productivity improvements, efficiencies and cost effec-
tiveness, and information handling.
Create a formal ADP requirements and control structure
which can interface with the ODP and other offices,
within and outside the Directorate.
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5.2.2 Procurement and Supply Productivity
Logistics will improve the thruput time for requisition-
ing and procurement production processes. This will be
done through increased application of ADP and word
processors. The preprocurement screening of requisi-
tions against the Federal Catalog data base via AUTODIN
will be done utilizing the Federal Automated Requisition-
ing System. By the end of 1986, Logistics will have
developed an automated system for the transmission and
processing of requisitions from field and headquarters
components directly into a logistics material management
system. Thruput times will be improved as follows:
Average Processing Times (days)
Current
Pre-System 16.00
Internal Processing 20.50
(SMB, procurement,
etc.)
Vendor Delivery 49.80
Sub Total 86.30
Depot Thru Time 17.00
By 1986
12.3
103.30 84.83
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This will result in an overall improvement in pro-
cessing of 18 percent. There is not much the Agency
can do to improve vendor delivery. Scarcity and
cost of resources, coupled with the specialized nature
of a high percentage of our procurements, will
result in less responsive vendors. Vendors will obviously
be looking at the greatest return on their investments,
and this is not likely to be with small-dollar volume
customers (CIA) who often place inordinate demands on
them and have unique requirements to be met. This
condition will be most noticeable in general procurements
and small contracts. In an effort to improve vendor
relationships, receiving documentation and vendor
payments processes will be automated. This should
result in faster payment of invoices and more satisfied
and willing vendors.
Information handling will be incorporated into the
planned automated systems. Paper records and files
will be eliminated where possible. Efforts will be
made to reduce necessary hard copy files to microfiche.
The preparation of purchase orders, shipping documents,
and bills of lading will be prepared by computers or
word processors.
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5.3 INITIATIVES IN THE OL FUNCTIONAL AREAS ARE A FOLLOWS:
5.3.1 SUPPLY OPERATIONS
What the Supply Division, and indeed the whole of Logistics,
will look like circa 1986 will depend to a great extent on what
happens in other components of the Agency. 5 - are;- -heasr..:in
ril.l,_.3a-ike ci..r.ca .1:9.8-6 _wiii
ha ns ,,fin other.c'amprnv ins -t
t of the''Ag ncy. Signals are clear in
DoD and elsewhere in Government, there is a trend to combine
automated systems information handling and communications.
Because the technologies of automation and communications have
merged, and because information systems include both the processing
and transmitting of information, the Army, in 1978, combined two
components to form the Office of the Assistant Chief of Staff for
Automation and Communications. There are efforts underway to
centralize control over automation and communications for the
U.S. Government. While organizational changes can occur slowly
within the Agency, it is possible that within the five-year
scope of this planning cycle, ODP and OC will merge. Because of
the large numbers of people and dollars involved, such a merger
could result in the formation of a new directorate. The impact
of a massive reorganization upon Logistics cannot accurately be
accessed at this time. However, the driving force may well
be OC. With a new charter, its own logistics bases at regional
sites, and the bulk of the line items in stock being under
OC cognizance, there is a question as to what services Supply
Division would provide OC with. Historically, OC has co-opted
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OL personnel (primarily engineering techs), but it takes
little imagination to visualize first the assignment of a con-
tracting team to the new directorate and eventually that
directorate's desire to centralize, under its control, as much
of its support base as possible. This type of scenario is one
which should be given some forethought as we enter into this
planning period and is but one of several hypothesis for the
future.
- In response to this type hypothesis, the Supply Organization
will be re-examined. Consolidation of and management of logistics
functions within Logistics as contrasted with the decentralized
operations as to the case of OC must be examined, as possible
enhancements to operational efficiency and better utilization
of personnel resources.
Much of the responsibilities for paramilitary support
falls to the Supply Division. A concerted effort will be
made to realistically identify the requirement and to assess
and tailor a program which appropriately meets the Agency's
needs.
Productivity enhancements will be made in areas of inventory
management, requisition processing, cataloging, receiving, and
other depot operations. This will be done through the more
extensive use of automation. Criteria for these enhancements
will be included in the development of a logistics materiel
management system.
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5.3.1.1 Depot Operations
Each depot will take additional specific actions to improve
efficiencies and productivity.
Institute new and innovative packaging techniques;
increase the use of automated material handling equipment.
Improve the general work and storage environment.
- Depot management will work to achieve a better balance
of personnel skills among the work force. This will be
done through cross-training and other training initiatives.
As a major user of automotive fuels, the Depot will
institute a gasohol program and will experiment with
synthetic fuels. Transportation management will receive
priority consideration in efforts to conserve fuels.
Conduct annual operational readiness exercises which
will facilitate the identification of areas that need
to be improved upon. These improvements will be made
during the five year period.
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Conduct an active career development program which will
ensure that the young and less experienced employees
have the skill to replace the mature and experienced
work force which continues to be lost through normal
attrition.
Considering the thrust in the Federal Government and the
recommendations of the several studies previously mentioned, the
Agency should again address the issue of the level of hierarchy
within CIA at which procurement policy and coordination should
The SIS bonus allocation system for contracting officers
will be reviewed and recommendations made to remove any appear-
ance of conflict of interest by having bonus decisions for SIS
procurement officials in the DDS&T made by the DDA.
A motivation career development plan for contracting officers
will be emphasized and continued efforts to increase profession-
alism among CIA contracting officers.
- Trends in the Federal budget have resulted in repetitive
reminders that we will be required to do more with less. Other
Federal agencies are automating their procurement processes
thereby making procurement less labor intensive. The automated
procedures also result in greater uniformity among contracts
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within an agency and easier updating of contract clauses both for
solicitations and contracts. An initial effort in this area
might include consideration of systems already on line in other
agencies, such as the Procurement Automated Data and Document
System (PADDS) developed by the U.S. Army Materiel Development
and Readiness Command (DARCOM). The PADDS operates on a mini-
computer dedicated to the procurement function. Our goal is to
progressively move toward increased automation in the procurement
processes.
- Efforts will continue to improve CIA's record of contracting
with minority contractors.
5.3.3 Printing and Photography
Assuming that resources will remain static, the productivity
of P&PD operating branches and staffs must be elevated, not only
to accommodate the increased demands of the future, but also
to enhance our capability to meet the situation of short-deadline
requests which we have with us at the present time. To increase
productivity, it will be necessary to link technological advance-
ments with improved methods and procedures throughout the Division,
casting an eye toward a total systems concept while looking at
the very diversified operations as they now exist. This concept
will avoid the pitfall of implementing technological or
procedural improvements which may enhance the efficiency of
one branch. or staff operation but at the expense of creating a
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new and greater inefficiency in an associated operation.
The upgrading of labor-intensive methods used in the distri-
bution of documents from the Dissemination Section, Bindery
Branch; the elevation of the Division's capability to create and
update graphics and visual aids rapidly; the improvement upon
existing means for the presentation of briefings for all Agency
components; the reduction of the Division's dependency on silver-
bearing photographic products; the improvement of communication
links between P&PD and the Headquarters Building as well as to
outlying facilities; and improvement in the overall quality of
printed and photographic material and the shortened response
times involved in their production; all of the above are necessary
to meet productivity goals. The three production cost
centers in P&PD have been segregated below to show what PFPD has
planned for each in an attempt to attain the aforementioned five-
year goals.
a. Printing
- Digitized Halftones
Through the use of a laser camera system, conventional time-
consuming camera operations and expensive graphic arts film can
be eliminated. The device scans the original copy, converts the
image to digitized data, and electronically incorporates the
desired fine line screen. The digitized halftone can be stored
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on a computer disk or magnetic tape. In an interactive elec-
tronic production system, stored digitized halftones will be
integrated with the text from the PTPD ETECS typesetting system
and transmitted through data links to a laser platemaker. The
laser platemaker will then produce a finished printing plate
containing both text and illustrations, properly assembled and
positioned for the press run sequence. At present this technology
has not reached practical application in P&PD but both its reality
and potential benefits are expected within the forthcoming five-
year time frame.
- Color Scanner
A direct color scanner is a device that will perform the
color separation functions of the offset camera automatically and
with a considerable savings in time. Color scanners utilize
laser technology to scan the original image, break the image into
its component colors, electronically "screen" the image, and
produce process film negatives used to make press plates. Color
scanners are available and are under consideration for use in
P1PD in the Offset Photography Branch.
While color process printing is currently accomplished as a
separate camera operation from the text, it may become possible
to incorporate the black process color image with ETECS-generated
text directly in a laser platemaker, using electronic links to
transfer the digitized image.
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- Laser Platemaker
Laser platemakers are particularly attractive because they
eliminate the need for silver-based photographic films, which
have recently experienced quantum price increases. Laser plate-
makers also offer faster processing times (2-3 minutes from copy
to plate) by eliminating camera, film processing, and stripping
operations.
Current laser platemakers are designed to accommodate a
newspaper-sized page format, too small for the commercial-size
presses used by P&PD. Manufacturers have developed methodologies
which allow presently available equipment to produce larger-sized
plates. Laser platemakers designed for the commercial marketplace
can be expected in two to three years.
Present laser platemaker systems read paste-up copy directly
and produce a plate from the copy. New equipment, now being
tested, can produce a plate from magnetic tape digital input.
Future platemakers are being developed which will. be electron-
ically linked to a computer typesetter. This will allow pages to
be made up on a keyboard terminal and transferred digitally to
the laser platemaker.
- Xerox 9700 Electronic Printing System
The Xerox Corporation is continuing to enhance the 9700's
capabilities. Within the next five-year time frame, it may be
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able to print in color, digitize and reproduce continuous tone
graphics, and efficiently replicate its initial output. ODP is
using the 9700; the Commo APARS program will employ seven 9700's.
Current planning in P&PD calls for the trial use of a 9700 to
gain hands-on experience with the 9700 capability.
- Bindery Branch Automation
Specifically, the dissemination of finished publications is
a function in urgent need of automation to speed production,
strengthen security aspects of this activity, and reduce a labor-
intensive hand operation. The marketplace is being searched for
hardware that will apply labels to packages, prepare courier
receipts, and computerize the contents of 115 mailing lists con-
taining about 1,600 addressees, which require almost daily up-
dating. It is believed that an intermediate level of automation
for this function is available; a longer term outlook suggests
the possibility of interactive computer data links, from customer
to Dissemination, which will allow the customer to update his
mailing list data base.
b. Photography
- Dicomed COM Recorder
The D148C System, scheduled to replace an existing COM
recorder, is a state-of-the-art device which can produce scien-
tific graphic plotting, business graphics, simulations, and
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engineering illustrations. In using a high resolution color CRT
and an appropriate optical assembly, this unit can generate 35mm
color slides, color motion picture footage (animation), as well
as the more conventional forms of microimagery. It also has the
flexibility of being on-line to the ODP host computer software
via data link, to the Zytron graphics generator, and can inter-
face with ETECS to provide a more efficient microrepublishing
capability. If acquired in FY-81, the Dicomed D148C System is
expected to herald a new era in linked, automated information
handling facilities.
c. Graphics
- Zytron Graphics Generator
This device, just now entering the marketplace, has been
trial tested by P&PD's Graphics and Visual Aids Staff for its
application in generating graphic illustrations. In using a
"smart" CRT terminal and appropriate, easy-to-use software, the
operator can create and/or update graphic illustrations and
briefing materials. In many respects, the Zytron package com-
petes with OGCR's Genigraphics device, at a tenth of the cost,
and will eliminate the use of an expensive external contract.
The Zytron system can accept data that is input via a key-
board, light pen, digitizing tablet, existing floppy disk files,
or from a host computer data base such as ODP's IBM 360/370. The
data that is input into the system is then used to create a bar
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chart, pie chart, line chart, stacked bar chart, or other illustra-
tion formats. The system also has a statistical analysis package
which will allow the user to calculate and show a percentage of
change when comparing one set of statistics with another.
The Zytron system will provide P&PD with a greater capa-
bility to meet customer demands in terms of reducing response
times and upgrading the quality of briefing materials. Ultimately
it will become an integral part of the data link system proposed
for automating the data flow of information handling.
d. Management Control
The technological innovations listed above reflect P&PD's
turn toward laser and electronic technologies for the answer to
meeting the challenge of providing perishable intelligence in
printing and photographic. forms to all Agency components on a
time-critical basis. It is just as important to augment these
technologies with sets of managerial controls, geared toward
obtaining a handle on all aspects of the Division's operations
for its responsible officers. Toward this end the following
enhancements are planned to the existing Management Information
System (MIS):
Upgrading of the printing and photography job manage-
ment modules to include more detailed information
relative to job costing and equipment loading.
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- Upgrading of the supply module to maximize efficiency
in supply ordering, receiving, and issuances.
Upgrading of the VM-based Automated Copier Management
System to allow the payment of bills from information
retrieved from this data by the Office of Finance.
Enhancement of the P&PD Property Accounting System to
allow for the more efficient updating of files perti-
nent to Agency property.
Development of a capability to store all PEPD mainten-
ance and service contracts.
Development of a system with a capability to list all
maintenance performed by PE1PD personnel.
Development of a capability to store detailed P&PD
budget data.
The aforementioned technological, methodological, and procedural
advancements will be linked together to ensure a rise in the
level of production throughout every element within PtPD.
5.3.4 Space Management and Facilities
- New Building
I]A ppro dd=rot RleMate12 0O,1IIAI :IA- 8i914R4W O9 ?2!g. trator,
S R ('71
F T
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GSA, OL stated that the continued practice of scattering our
buildings and personnel throughout the Washington metropolitan
area not only is inefficient and inconvient, but alas goes counter
to our efforts to conserve energy. Further, the letter points
out that this high national priority may now warrant consideration
of a new building in the Headquarters compound. During this
planning period serious study will be given to promoting
enlarged facilities at Headquarters, and the consolidation of
our personnel onto this compound. A Building Planning Staff
will be organized to pursue this project.
- Building
This building, which will be available for occupancy in 1981,
will provide some relief to the space problem. Space adjustment
will follow in Headquarters,
and Chamber of Commerce
25X1
buildings as a result of this new acquisition.
Support space requirements for SAFE at Headquarters; to be
completed by June 1982.
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- Enhance Headquarters Utility Reliability
Install new generators and automates; expand electric Vault
C by 1981; construct a new transformer vault by 1983; and, install
new steam and chilled water main to the Headquarters Building by
mid-1981.
Enhance Safety at Headquarters
Complete fire barrier project at Headquarters, and short
circuit corrections by August 1981.
5.3.5 Building Maintenance
Dispite the several unsuccessful attempts made by the
Agency to get out from under the umbrella of GSA, a more
acceptable alternative for maintaining our facilities must
be found. A thorough study will be conducted towards this end,
which will include an exemption from GSA to do our own
maintenance.
5.4 ENERGY CONSERVATION
The Agency will be a full participant in Federal programs to
conserve energy. During this period specific attention will be
given as well to:
Working with GSA in minimizing enery conservation of
Agency consistant with mission requirements.
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Studying the feasibility of converting classified and
other waste to energy.
Developing a viable ride-sharing and vanpool program.
Explore the possibility of leasing, from GSA, fuel
efficient sedans for the Headquarters motor pool.
Promote the use of gasohol when possible.
5.5 OTHER MANAGEMENT INITIATIVES
5.5.1 Industrial Security
- The consolidation of the Industrial Facility Rein-
spection function within the Security Staff, OL, should
result in several gains. It would better situate the Staff
in carrying out a schedule which would provide industrial
facilities and the annual reinspection of all others. The
Contracting Team ISOs would be relieved of this facility in-
spection responsibilities and would be available for coordinating
with COTRs on classified procurement activities, for providing
guidance and advice to their respective offices and contractors
on Industrial Security policy and procedures, for the security
review of RFPs and contracts, and for the inspection and approval
of new facilities as may be required. The timely reinspection
of industrial facilities would be ensured and an overall enhance-
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ment in the quality of the Industrial Security Program could be
anticipated.
The improvement and expansion of the data and files
management program would be an overall benefit to the maintenance
of an effective industrial security program. At the present
time the Security Staff is housing approximately 2,000 facility
file folders amounting to 64 linear feet of material. Microfiche
of travel files would greatly reduce the space requirement.
Inactive files after being reproduced will be retired.
5.5.2 Information Handling
A feasibility study will be conducted to consider establishing
centralized word processing and information handling centers.
This Center will prepare the bulk of typed correspondence such
as purchase orders, contracts, reports, and memoranda; store
information using computer medium; record, track, and control
correspondence; and operate a copy center. Customers of the
Center should be able to receive information electronically.
Control of APEX documents will be centralized.
5.6 BEYOND THE PLAN
It would be difficult to conclude this plan without at
least peeking into the future - beyond the five years. Much
has been covered, certainly sufficient material to keep
Logistics busy for a long time. One cannot help but wonder
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if the Plan is on track. Logistics has become a big, highly
sophisticated business: Evidence, one of the reasons given
for the recent aborted hostage rescue attempt was a "logistical
failure." Industry has become much more aware of the need for
good planning and good logistics, even so that it is now con-
sidered a discipline in itself with its own professional organization -
the Society of Logistics Engineers.
Given the recognition and growing demand for good Logistics,
we must wonder if OL is properly placed in the Agency hierarchy.
The point has already been made about Procurement, perhaps the
same might be true of the whole of OL.
In conclusion, it should again be noted that the success
of the plan will require that planning be a dynamic process,
the managers fully participate in the planning and execution of
the strategy, and that the MBO program, the PC and the PDP be
in lock-step with the total Plan. The uncertainties in predicting
the future, complide with a rigidity set course of action, can
lead to disasterous consequences. Managers should not, however,
feel intimated in any way by the plan, but should consider themselves
prime movers in translating strategy into action. It bears
repeating that historical precedents are not necessarily valid
assumptions for future courses of action. The planners must be
alerted to the signals which are constantly being emitted, and
have the courage and conviction to deal with them.
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